New York 2025-2026 Regular Session

New York Assembly Bill A07296

Introduced
3/25/25  
Refer
3/25/25  

Caption

Relates to the number of residential properties limited liability companies can own; requires beneficial owners of limited liability companies identify themselves when transferring or purchasing real property.

Summary

Bill A07296 seeks to amend the limited liability company law and real property law in New York by imposing restrictions on the ownership of residential real properties by limited liability companies (LLCs). Specifically, it limits individuals to being beneficial owners of no more than three LLCs that own residential real property within the state. The bill also mandates that any LLC intending to acquire residential property must disclose the identities of its beneficial owners to the Department of State. Additionally, it requires that any deed involving an LLC must be accompanied by an affidavit identifying its beneficial owners.

Impact

If enacted, this bill will significantly alter the landscape of residential real estate ownership in New York by limiting the number of properties that can be owned through LLCs. This could lead to a reduction in the number of properties owned by large investors and corporations, potentially making it easier for individual buyers to compete in the housing market. The bill also introduces new compliance requirements for LLCs, including mandatory disclosures and penalties for non-compliance, which may affect how LLCs operate in the real estate sector.

Sentiment

The general sentiment surrounding Bill A07296 appears to be mixed, with some stakeholders expressing support for the bill as a means to increase transparency in real estate transactions and curb speculative buying practices. However, there are concerns from real estate investors and some business groups about the potential negative impact on property investment and the housing market as a whole.

Contention

Notable points of contention include the potential economic impact on real estate investors who may find the new ownership limits restrictive. Proponents argue that the bill will help address housing affordability by limiting corporate ownership of residential properties, while opponents raise concerns that it could deter investment in the housing market and lead to unintended consequences such as decreased property values.

Companion Bills

No companion bills found.

Previously Filed As

NY SB164

Relating to limited liability companies.

NY S0316

Limited Liability Companies

NY H0403

Limited Liability Companies

NY HB403

Limited Liability Companies:

NY AB683

An act to add Section 17702.08 to the Corporations Code, relating to business entities.

NY S2191

Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.

NY A4856

Expands liability of certain individuals associated with limited liability companies and other commercial entities, when acting as residential landlord.

NY A4017

Requires limited liability company to disclose ownership information when submitting deed for recording.

NY A4928

Establishes offense of harassment of residential tenant; expands liability of certain members of limited liability company that own residential rental properties.

NY S4231

Establishes offense of harassment of residential tenant; expands liability of certain members of limited liability company that own residential rental properties.

Similar Bills

AZ SB1310

False documents; recording; violations

CA SB722

Transit-oriented housing development: excluded parcels and sites.

NJ A4017

Requires limited liability company to disclose ownership information when submitting deed for recording.

TX HB49

Relating to the treatment and beneficial use of fluid oil and gas waste and related material, including a limitation on liability for that treatment or use.

AZ SB1726

Unlawful occupants; property; removal; documents

NJ S399

Requires limited liability company to disclose ownership information when submitting deed for recording and establishes penalty.

CT HB05512

An Act Concerning The Department Of Public Health's Recommendations Regarding Real Property Change Of Ownership.

MA H501

To ensure LLC transparency